David Tudor, who was team rector for the Parish of Canvey in Essex, had been suspended for the last five years but was banned for life by the Church of England at a tribunal hearing this week.
The panel heard he formed sexual relationships with two girls - including one under the age of 16 - between 1982 and 1989.
The Right Reverend Dr Guli Francis-Deqhani welcomed the decision to "prohibit him from ministry for life".
“I am deeply sorry for the profound hurt and harm David Tudor’s behaviour has caused," said Dr Francis-Deqhani.
“There will be important lessons that must be learned about how this matter has been handled over many years and I welcome the fact that there will now be a national independent safeguarding practice review.”
Diaries destroyed
The tribunal determined that Mr Tudor's behaviour - which occurred when he was a priest in the Diocese of Southwark - was "an abuse of trust" which amounted to "grooming".
Mr Tudor told the two-day tribunal that he had no recollection of the incidents with the two girls - who were identified as X and Y - but he accepted that sexual acts took place between himself and Y, and did not challenge X's account of what happened.
The tribunal heard how the former vicar tried to keep the relationship with X - which started when she was 15 years old - a secret, demanding she destroyed her diaries.
He offered a full apology to both X and Y.
Surrey Police said it investigated a report in 2019 of “non-recent indecent assault offences” against a man in his 60s from Canvey Island - which were alleged to have taken place in Reigate - but the Crown Prosecution Service determined there was insufficient evidence to take the matter to court.
“As with all closed cases, if any new or compelling evidence is reported to us, we will look at the possibility of reopening the investigation," a spokesperson for the force added.
Mr Tudor was also accused but acquitted of indecent assault against a 16-year-old girl - identified as Z - in January 1988, the tribunal heard.
He was sentenced to six months in prison in 1988 for indecent assault in relation to three other complainants, but this conviction was later quashed by the Court of Appeal.
After serving a five-year suspension, he returned to ministry in the 1990s and was appointed team vicar of Canvey Island in 1997 and team rector in 2000.
Mr Tudor was later suspended in 2005 by the Diocese of Chelmsford after a complaint was made about his conduct relating to a time prior to his ordination in the 1970s, which did not involve either X or Y.
The tribunal heard there were no criminal proceedings and he was permitted to return to his position at Canvey Island.
The Rt Reverend Christopher Chessun, Bishop of Southwark, said that Mr Tudor’s behaviour was “a serious and damaging breach of his pastoral and professional obligations as a priest”.
Mr Tudor’s victims were being offered full support, Reverend Chessun added, saying he was “deeply grateful” for their courage in sharing their experiences and engaging “with this long and difficult process”.